Rupee Strengthens and Oil Prices Fall
Oil Prices Drop as Tensions Ease
MUMBAI: Brent crude oil prices fell by nearly $4. They are now at $67.7 per barrel. US West Texas Intermediate crude also dropped by $3.8. It now costs $64.7 per barrel. This drop happened as worries about oil supply issues in West Asia lessened.
Key Points:
- Brent crude oil fell by nearly $4 to $67.7 per barrel.
- US West Texas Intermediate crude dropped by $3.8 to $64.7 per barrel.
- Worries about oil supply disruptions in West Asia have eased.
Rupee Sees Largest Daily Increase in a Month
The local currency had its biggest daily gain in a month. It recovered to the 85 level. This happened a day after dealers worried it might reach 87. The rupee bounced back from a record low. It closed with a gain of 75 paise at 86.03 against the dollar.
Factors Helping the Rupee:
- A weaker US dollar.
- Positive feelings in domestic equity markets.
Brent Crude Falls as Ceasefire is Announced
Brent crude, the global oil standard, fell by 3.2%. It is now at $69.2 per barrel in futures trade. This happened as a ceasefire agreement between Iran and Israel was announced. At the interbank foreign exchange, the local unit opened at 86.07 against the US dollar. It traded between 85.91 and 86.27 before closing at 86.03. The rupee had dropped 23 paise to close at a five-month low of 86.78 against the dollar on Monday.
Future Dollar Trends
Looking ahead, the dollar’s movement will likely be affected by US data releases. This includes consumer confidence reports and the Federal Reserve chief’s testimony.
